News Release
March 16, 2000

TEPPCO SCORES SIGNIFICANT ACQUISITION WITH ADDITION OF ARCO PIPE LINE ASSETS

HOUSTON – Texas Eastern Products Pipeline Company, the general partner of TEPPCO Partners, L.P., (NYSE:TPP) today announced that it signed a definitive agreement to acquire the stock of ARCO Pipe Line Company, a wholly owned subsidiary of Atlantic Richfield Company.

The purchase price of $355 million includes ARCO’s interests in crude and refined products transportation pipelines from the Texas Gulf Coast to Cushing, Okla., Mid-Continent crude distribution services, and crude oil terminal facilities. The purchase is contingent upon the completion of ARCO’s proposed merger with BP Amoco and satisfaction of any regulatory requirements. The parties anticipate the transaction will be completed within 60 days. PaineWebber Incorporated acted as financial advisor to TEPPCO.

"The acquisition of ARCO Pipe Line Company meets one of our strategic goals of owning assets complimentary to TEPPCO’s existing businesses," said William L. Thacker, chairman, president, and chief executive officer of the general partner of TEPPCO. "It allows us to improve our regional competitiveness and realize substantial synergies within our existing asset base. All of the revenue associated with the acquired assets is either tariff or fee-based, and does not include lease gathering, marketing or trading activity. The acquisition will be accretive to both income and cash flow on an annual basis in 2001."

Under the proposed transaction, TEPPCO will acquire ARCO’s 50-percent ownership interest in Seaway Pipeline Company, a partnership with subsidiaries of Phillips Petroleum Company. The Seaway System includes a 500-mile, 30-inch diameter pipeline that carries mostly imported crude oil from a marine terminal at Freeport, Texas, to Cushing with a capacity of 350,000 barrels per day. The system also includes a 550-mile, 20-inch diameter refined products pipeline from Pasadena, Texas, to Cushing, with a capacity of 85,000 barrels per day. A crude oil terminal facility at Texas City, Texas, that is primarily used to supply refineries in the Houston area, is the third major component of Seaway. TEPPCO will assume ARCO’s role as operator of Seaway.

"Seaway is linked to the demand for offshore and foreign crude, and not domestic production, which enhances our existing crude oil business," said Thacker. "The products system is a vital link to the inland market where demand is expected to grow."

TEPPCO will also acquire: ARCO’s crude oil terminal facilities in Cushing and Midland, Texas, including the line transfer and pumpover business at each location; an undivided ownership interest in both the Rancho Pipeline, a 400-mile, 24-inch diameter, crude oil pipeline from West Texas to Houston, and the Basin Pipeline, a 416-mile, crude oil pipeline running from Jal, N.M., through Midland to Cushing both of which will be operated by another member of the undivided joint interest; and the receipt and delivery pipelines 100-percent owned by ARCO, known as the West Texas Trunk System, which is centered around Midland. The receipt pipelines consist of three, 8-inch diameter crude oil trunklines with a combined capacity of more than 70,000 barrels per day. The delivery pipeline system consists of one, 8-inch crude oil trunkline with a capacity of 22,000 barrels per day.

TEPPCO Partners, L.P. is a publicly owned master limited partnership, which conducts business through two operating companies. TE Products Pipeline Company, Limited Partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States. TEPPCO Crude Oil, LLC, is a crude oil gathering, transportation, storage and marketing company operating primarily in Texas and Oklahoma. Texas Eastern Products Pipeline Company, which is an indirect wholly owned subsidiary of Duke Energy, is the general partner of TEPPCO Partners, L.P.

Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses –generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com

TEPPCO will be hosting an investment community conference call on March 17, 2000, commencing at 10 a.m. CST. Interested parties may listen via the Internet, on either a live or replay basis, at www.streetevents.com.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and other factors discussed in TEPPCO’s filings with the Securities and Exchange Commission.

Contact: Kathleen A. Sauvé
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Email: ksauve@duke-energy.com
Contact: Brenda J. Peters
Phone: 713/759-3954
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com